Saipem Provides a Reduced Service

One profit warning in a year is a misfortune; two, and concerns about a deep-seated malaise take root.

Such is the picture at Saipem, the Italian oil-services company that late Friday said it would swing to a net loss this year of €300 million to €350 million ($400.3 million to $467 million), compared with a previously expected €450 million net profit. The company, which faces an investigation into past alleged corruption in Algeria, had already cut its outlook for 2013 in January. After a 25% fall on Monday, Saipem's...